India may face a significant shortage of air conditioners and refrigerators in the summer of 2025 due to the Bureau of Indian Standards (BIS) refusing to recertify over 50 component suppliers in China and Vietnam.
This decision is aimed at promoting local manufacturing which can impact critical components like compressors and advanced electronics thus leaving manufacturers concerned about import substitutions and capacity constraints. Due to the excess heat wave and global warming the demand for ACs skyrocketed as was estimated to be sold around 14 million units by the end of 2024.
The Imports for critical components such as copper tubes, metal sheets, compressors, advanced electronics, and motors can be affected by firms likely including Sanyo Refrigeration Equipment, Avic Electromechanical (Shenyang), and Highly Group. Even some of the chief executives of some electronics companies said the government indicated to the industry that it would approve less BIS.
Listed below are some of the Stocks to benefit from BIS refusal for Chinese suppliers benefitting Indian AC manufacturers
Voltas
Voltas is a leading Indian air conditioning and engineering solutions provider, specializing in cooling products and project management since 1954.
With a market capitalization of Rs. 55,463 Crores, the shares of Voltas Limited closed on Thursday at Rs. 1,676.20 per equity share, down 0.50 percent from its previous day’s close price of Rs. 1,684.55.
Its Revenue from operations grew by 14.2 percent from Rs. 2,293 Crores in Q2FY24 to Rs. 2,619 Crores in Q2FY25, accompanied by profits of Rs. 36 Crores to Rs. 133 Crores.
Blue Star
Blue Star is a prominent Indian company known for its air conditioning and refrigeration solutions, offering a range of commercial and residential products.
With a market capitalization of Rs. 37,708.72 Crores, the shares of Blue Star Limited closed on Thursday at Rs. 1,833.95 per equity share, up 1.11 percent from its previous day’s close price of Rs. 1,813.80.
Its Revenue from operations grew by 20.42 percent from Rs. 1,890 Crores in Q2FY24 to Rs. 2,276 Crores in Q2FY25, accompanied by profits of Rs. 71 Crores to Rs. 96 Crores.
PG Electroplast manufactures electronic components and appliances, focusing on innovative solutions in the consumer electronics and home appliance sectors.
With a market capitalization of Rs. 17,878.79 Crores, the shares of PG Electroplast Limited closed on Thursday at Rs. 683.35 per equity share, up 1.12 percent from its previous day’s close price of Rs. 675.80.
Its Revenue from operations grew by 46 percent from Rs. 460 Crores in Q2FY24 to Rs. 671 Crores in Q2FY25, accompanied by a profit of Rs. 12 Crores to Rs. 19 Crores.
KRN Heat Exchanger and Refrigeration
KRN Heat Exchanger specializes in manufacturing heat exchangers and related products, providing efficient thermal management solutions for various industries.
With a market capitalization of Rs. 4,756 Crores, the shares of KRN Heat Exchanger Limited closed on Thursday at Rs. 765.15 per equity share, up 3.74 percent from its previous day’s close price of Rs. 737.60.
Its Revenue from operations grew by 28 percent from Rs. 71 Crores in Q2FY24 to Rs. 91 Crores in Q2FY25, accompanied by profits of Rs. 9 Crores to Rs. 12 Crores.
Epack Durable
Epack Durable is a construction solutions provider, offering prefabricated buildings, modular structures, and innovative building materials for diverse applications.
With a market capitalization of Rs. 3,764 Crores, the shares of Epack Durable Limited closed on Thursday at Rs. 392.20 per equity share, down 4.75 percent from its previous day’s close price of Rs. 411.75.
Its Revenue from operations grew by 111 percent from Rs. 178.10 Crores in Q2FY24 to Rs. 377.10 Crores in Q2FY25, accompanied by a loss of Rs. 6.08 Crores to a loss of Rs. 8.49 Crores.
Havells India
Havells India Limited is a major electrical equipment manufacturer, producing a wide range of products including lighting, cables, and consumer appliances.
With a market capitalization of Rs. 1,02,398 Crores, the shares of Havells India Limited closed on Thursday at Rs. 1,633.30 per equity share, up 0.03 percent from its previous day’s close price of Rs. 1,632.85.
Its Revenue from operations grew by 16 percent from Rs. 3,900 Crores in Q2FY24 to Rs. 4,539 Crores in Q2FY25, accompanied by profits of Rs. 249 Crores to Rs. 268 Crores.
Written by: Santhosh S
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